Financial Market Overview
14th December, 2018
- The Indian rupee fell for a second straight week against the dollar, as a surprise resignation by the nation’s central bank governor and setback for the ruling party in some key state elections weighed on investor sentiment.
- The rupee settled lower at 71.90 to a dollar, against 71.68 at previous close. After opening at 71.79 and remained in a 71.69-72.03 band. Most Asian currencies ended lower against the greenback, as weak Chinese data re-ignited worries over slowdown in the global economic growth.
- The local unit fell 1.55% against the dollar this week, extending last week’s 1.74% fall. Foreign investors net bought $57.81 million of Indian shares yesterday, data from National Securities Depository Ltd. showed. In December so far, foreign investors have net bought $296.72 million worth in local equities and $372.05 million worth domestic bonds.
- Indian shares eked out a slightly positive finish on Friday, with the NSE closing above 10,800 points for the first time in 10 days, buoyed by gains in energy, IT and telecom sectors.
- The broader NSE index closed 0.13 percent firmer at 10,805.45, while the benchmark BSE index ended 0.09 percent higher at 35,962.93.
- NSE clocked in a weekly gain of 1.05 percent, while the BSE ended 0.81 percent firmer for the week.
- The Reserve Bank of India’s board held a meeting, which was headed by the new governor Shakti kanta Das, and deliberated on the central bank’s governance framework and decided that the matter required further examination
- European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.22% while France’s CAC 40 is off 1.04% and London’s FTSE 100 is lower by 0.90%.
- The S&P 500 ended little changed after a volatile session on Thursday, as investors favored defensive sectors while the biggest drag came from financials and consumer discretionary stocks.
- The Dow Jones Industrial Average rose 70.11 points, or 0.29 percent, to 24,597.38, the S&P 500 lost 0.04 points, or -0.00 percent, to 2,651.03, and the Nasdaq Composite dropped 27.41 points, or 0.39 percent, to 7,070.90.
- Euro zone business ended the year on a weak note, expanding at the slowest pace in over four years as new order growth all but dried up, hurt by trade tensions and violent protests in France, a survey showed on Friday. Williamson said the PMI indicated the bloc’s economy would expand 0.2-0.3 percent this quarter – and probably toward the lower end – slower than the 0.4 percent.
- Germany’s private sector expansion slowed to a four-year low in December, a survey showed on Friday, suggesting growth in Europe’s largest economy may be weak in the final quarter.
- IHS Markit’s flash composite Purchasing Managers’ Index (PMI), which tracks the manufacturing and services sectors that together account for more than two-thirds of the economy, fell to 52.2 from 52.3 in the previous month
- Banks should not be allowed to use contingent convertible bonds, known in the market as AT1, to meet the capital requirements set by the European Central Bank, ECB supervisor Sabine Lautenschlaeger said on Friday.